Wienerberger announces agreement to acquire facade specialist Arriscraft

- Key strategic expansion to Canada as well as development and strengthening of US market position

- Acquisition of operating companies for CAD 107 million planned - dependent on unit holder approval

- Ideal addition through attractive niche product line manufactured stone

- Synergies through enlargement of product portfolio and utilization of US direct sales network

Vienna, May 29, 2007 - Wienerberger AG has signed an agreement with Arriscraft International Income Fund, a leading Canadian producer of manufactured stone, to acquire the Fund's operating units through its wholly owned subsidiary General Shale. The purchase price amounts to CAD 107 million (€ 71 mill.). The transaction is subject to the approval of the Fund's unit holders at a special meeting, the receipt of regulatory approvals and specific third party consents. Certain significant unit holders have provided their written agreement to General Shale to vote their voting units of the Fund in favor of the transaction. The units subject to the voting agreement represent an aggregate of approximately 27.8% of the Fund's issued and outstanding voting units of the Fund. The unit holders who have agreed to vote their units of the Fund in favor of the transaction are a corporation owned by the former owner of the Arriscraft business and the current and former management group.

Possibility for growth through entry into Canadian market

"The acquisition of the manufactured stone specialist Arriscraft will strengthen our position in the USA and also mark our entry into the Canadian market, which represents an important expansion step for our Group. It will also enlarge our local product portfolio to include a state-of-the-art and attractive niche product. We are convinced that the acquisition of Arriscraft will create a significant potential for cost and revenue synergies, above all through the utilization of our direct sales network in the USA, which we have strengthened in recent years and extended with the acquisition of Robinson Brick", explained Dick Green, CEO of General Shale.

Arriscraft is the market leader with manufactured stone in Canada and USA

Arriscraft International was founded in 1949 and is headquartered in Cambridge, Ontario, roughly 100 km west of Toronto. In addition to Cambridge, the company also operates plants in St. Étienne des Grès in Quebec, Canada, and Fort Valley, Georgia, USA. This façade specialist also has a dolomitic limestone quarry with an annual capacity of more than 30,000 tons in the southwest of Ontario. The product portfolio covers manufactured stone, natural limestone and stone accessories. Manufactured stone is produced by mixing fine sand with quick lime under high pressure, and is harder than natural stone. The finished product has an unusual density and durability, is completely shrink-resistant and expansion free, and also has all the aging and light reflective properties of natural stone. Its many advantageous features make manufactured stone a high-quality building material with a substantial potential for the future. The range of accessories covers products made of manufactured and natural stone that can be used for all types of buildings. Arriscraft International generated revenues of CAD 79.2 million (€ 52.7 mill.) and EBITDA of CAD 11.3 million (€ 7.5 mill.) in 2006 with over 400 employees. Arriscraft as well as the recently acquired Robinson Brick Company will both report through General Shale which will hold responsibility for the Wienerberger growth strategy in North-America.

Growth segment commercial buildings

"The products made by Arriscraft are not only used in residential construction, but also to a large extent in commercial buildings. In contrast to the current downturn in the residential construction, we expect increasing building activity in the commercial sectors of the USA and Canada. The acquisition of this manufactured stone specialist will enable us to develop an additional customer group and also strengthen our regional positions", explained Dick Green. In 2006 Arriscraft recorded the largest share of revenues, or roughly 40%, on sales of manufactured stone for commercial buildings. Arriscraft is the largest North-American supplier in this segment, and generated 46% of revenues in the USA and 54% in Canada in 2006.

Potential for synergy, optimization and further investments

Wienerberger entered the US brick market in 1999 with the acquisition of the second largest producer, General Shale. Further takeovers followed with Darlington and Cherokee Sanford in 2000 and Robinson Brick in 2006. "The USA is our largest single market, with 16% of Wienerberger Group revenues. In spite of the current weakness, we expect further growth over the mid- to long-term because of the favourable demographic trends. For this reason, the acquisition of Arriscraft represents an important step in our profitable expansion strategy. We also see substantial opportunities for future optimization and investments with this acquisition as part of our bolt-on program, which will allow us to steadily expand our market positions over the long-term", commented Wolfgang Reithofer, CEO of Wienerberger AG, on the strategic importance of this transaction. Wienerberger will finance this intended acquisition from free cash flow and from existing credit lines.